Student Loan Programs

Student Loan Programs

The U.S. Department of Education is continuing its commitment to helping students and protecting taxpayer dollars with an announcement today that it is accepting proposals from guaranty agencies that participate in the Federal Family Education Loan (FFEL) program to enter into Voluntary Flexible Agreements (VFAs) with the Secretary.

U.S. Secretary of Education Arne Duncan today announced that the FY 2008 national cohort default rate is 7.0 percent, up from the FY 2007 rate of 6.7 percent. The default rates increased from 5.9 to 6 percent for public institutions, from 3.7 to 4 percent for private institutions, and from 11 to 11.6 percent for for-profit schools.

Starting July 1, a new repayment option is available that makes monthly payments more affordable for Americans with heavy federal student loan burdens. The new Income-Based Repayment (IBR) plan protects borrowers by linking payments to income and family size. A related new program offers additional benefits to those working in public service jobs.